swoon and cheek hair cut and peoples smile. and the sexiest man's list in the past. bernie madoff ted kasinski maybe they would have skipped the store. >>. >> heather: i'm health they are childers. >> i'm gres gregg jarrett. >> gridlock in washington continues. the white house not backing down one bit. republican leaders say though are nowhere near on negotiations to avoid the fiscal cliff. >> and protest in tahrir square as anger continues to grow

against egyptian president mohammed morsi. we'll have a live report. >> new information on what may have caused a freight train carrying dangerous chemicals to derail in new jersey. >> heather: the clock is winding down to a potential economic disaster. there has been a lot of talk apparently nothing to show for it. democrats and republicans blaming each other nor the standoff with your tax bill riding on the out come. unless an agreement is reached by the end of the month, bush-era tax cuts will expire triggering a rise in taxes by an average of 5%. that means a middle-class family will pay $2,000 more in taxes and married couples would be hurt because of marriage

penalty. it doesn't include the budget consequences. $55 billion would be cut from the pentagon and another $55 billion slashed from domestic programs. an estimated 2 million jobs could be lost pushing the economy back into a recession adding to the misery to those facing tough times by ending jobless benefits for the long term unemployed. steve is live in washington. where do we stand at this point? >> reporter: two sides did do something today. they appeared on the sunday talk shows but they haven't negotiated an actual deal. john boehner blasted the white house plan which was put forward last week. boehner says the president essentially wasted the last three weeks since the election with nonsense. >> the president is asking for $1.6 trillion worth of new revenue over ten years, twice as

much as he been asking for in public. stimulus spending that exceeded the amount of new cuts he was willing to consider. it was not a serious offer. >> reporter: and boehner says he was flabbergasted when he was given the proposal. >> heather: and democrats are defending themselves? >> treasury-secretary tim geithner on fox news defending the president's plan for raising revenues, cutting spending and reduce the deficit by $4 trillion over the next ten years. he said the ball is in the g.o.p.'s court. >> you have heard them for the first time i think in two decades they are willing to have revenues go up to make a balanced plan but they have to tell you what they want do on rates and revenues. >> he says there is no plan to an agreement unless they acknowledge tax rates have to go up for the wealthiest americans.

>> heather: thank you very much. with less than one month to reach a deal there is new urgency to reach a deal. coming up our political panel will debate the zik go points. >> brand-new reaction today from the potential nominee of u.n. ambassador susan rice to be the next secretary of state. a senator reiterating concerns about statements she made following the benghazi attack that left four americans dead. in the meantime, clare mccaskill came to the ambassador's defense. >> she had reviewed the dpeor foer going. >> on sunday shows and went well beyond the talking points, we have decimated al-qaeda, that was nowhere on the talking points, said things the attack was a result of a heinous and offensive video. said the security at our

consulate and strong and significant. that is not in the talking points and frankly not supported by the record of what happened. >> the talking points came from the intelligence community. you don't hear one criticism of david petraeus. it was his shop that produced the talking points that susan rice talked about. is there a double standard here? it appears there is, very unfair one. >> gregg: last week rice met with members of the senate armed services committee to try to explain the situation. lindsay graham saying that ambassador rice did not help herself very much. >> heather: supporters of mohammed morsi staging a demonstration in washington, d.c. standing in front of the egyptian embassy armed with signs. opponents were also out carrying signs with slogans like egypt deserves better. >> gregg: the highest court

demonstrate go v strong show of protest suspending work indefinitely. the latest twist worsening political crisis pitting egyptian president against the court. steve harrigan is streaming live from cairo. >> reporter: gregg a remarkable. >> gregg: we'll get back to him in just a moment. >> heather: meantime. taliban militants attempting to storm a joint afghan air base early this morning. a trio of homicide bombers detonating explosives at the main gate and kicking off a gun battle that lasted two hours. nato spokesman says none of gunmen reached the perimeter. five were kill and wonder was member of the national security force and nine attackers also

died. >> gregg: let's go back to steve harrigan where the protests against mohammed morsi. what is the latest? >> reporter: a remarkable scene, egypt's supreme court several thousands supporters 6 morsi ringed the building. they say they don't feel they are able to work because of psychological and physical pressure. they feel they were intimidated by supporters of the president and mob rule taking effect in egypt's highest court. next step for egypt's constitution which that group was supposed to rule on will be a national referendum. they will go up or down on the constitution. if it is accepted. morsi said he will give up the extraordinary powers he declared he has in his powers last week. it was that move which really kicked off these street

protests. over the last 48 hours we have seen competing protests, those that want to drive him out of power and those that support him. we have seen tremendous support from the muslim brotherhood. in the meantime the protestors want to see him out of power and their numbers have declined. >> gregg: we hear a lot of noise behind you. explain what is going on there. are people camped out and are they using loudspeakers to make their point? what are they doing? >> reporter: of the two competing protestors these are the people in tahrir square who are angry with mohammed morsi. they set up loud speakers and tents and they say they intend to stay here until they can drive him out of power. it's hard to see what kind of leverage they have. it's hard to see whether they will be able to maintain the momentum. we saw a peak of 200,000 people

last tuesday but it's been a steady decline now just few thousand behind me. >> gregg: steve, thanks. >> heather: israel announcing it is withholding hundred million dollars to the palestinian thovtd after successful palestinian bid for non-member observer state status at the united nations. david lee miller has the latest. >> israel says it is withholding the hundred million dollars because the palestinian authority owes israel state electrical company some $200 million. israel collected this money on behalf of the palestinian authority for taxes and customs duty. palestinian authority badly needs this cash to pay the more than 150,000 civil servants that

is on its payroll. this is not the first time that the palestinian authority has had its money withheld. it happened two years ago. they held up the funds temporarily when they joined the unesco. hours ago mahmoud abbas got a hero's welcome. 35,000 people rallied and he said what happened in the u.n. was an historic achievement and it would strengthen united. they supported the vote but refuses israel's right to existed. now, the leadership is inviting the moderate party of the palestinian president to join their efforts in what they term the armed resistance. israel settlement construction on the west banks conned in response to the u.n. vote. it said it was now planning for additional construction in this

very same area. but the actual new work could be years away. additionally the government also gave the green light to construction of 3,000 other units in east jerusalem and elsewhere on the west bank. at the weekly cabinet meeting, benjamin netanyahu dismissed criticism of the settlement construction, saying, quote. we will carry on building in jerusalem and all places on the map of israel's strategic interests if the settlement plans proceed, palestinians say they will destroy any chance of a viable state. just a while ago secretary general says the plans is what he termed a fatal blow to peace. it has been two years now since negotiations have taken place. palestinians say there cannot be peace talks as long as the settlement construction continues. israelis say no negotiations as long as there is any type of

preconditions. stalemate continues. >> heather: david lee miller, thank you. >> gregg: kansas city chiefs taking the field one day after losing one of their own. he killed his girlfriend before heading to the stadium when he killed himself right in front of the head coach and general manager. he reportedly thanked them for giving him a chance in the n.f.l. before pulling the trigger. police have not yet released a possible motive for the murder-suicide. he and his girlfriend left behind a 3-month-old girl. >> heather: west coast bracing for major flooding after severe weather brings more rain to an area already drenched. people in some parts of california are preparing for the worst filling sandbags as some rivers are expected to go over their banks. dominic is streaming live from

petaluma, california with the latest. >> reporter: clear sky above me, 12 hours ago it was for en shl rain. that rain is in the ground and we're expecting it to come town streams and hit major river ways. napa valley, city of napa was expecting a crest of at least two feet to rise above the flood stage. back in 2005 the city of neep was hit very badly by floods. this time they are saying they can protect the city. take a listen. because of the history of flooding in napa we have a good idea where the water will come out first. there are certain points and we can plan in advance. if this moment if the projections are accurate we'll probably looking at street flooding, intersections being flooded, nothing terribly

serious. >> reporter: and caveat may be necessary. there are flash flood warning around the bay area. two flash points they are looking at truck key river in nevada because of low snow levels -- truckee river and the russian river in guerneville, flooding on potentially big scale. guerneville, it's going fake up to two days to leach the coast. two days ahead of us. pg&e the utility is saying 54,000 customers without power and there was one power pole in san francisco that got smacked in two by the force of gail winds. with the weather now and all the rain has dissipated it hasn't stopped the football. we have the raiders against the cleveland browns. back to you.

>> heather: thank you very much. >> gregg: as he mentioned, storm is expected to be the last of really big storms hitting the area this weekend. that does not mean folks here are out of the woods as of yet. maria molina is in the weather center. >> good to see you. we're expecting more. another storm system to arrive next week on tuesday. we have to deal with the weather going on this weekend and next week expect another one. it's been ongoing the entire this week. we've been seeing storms dumping heavy rain, heavy mountain snow and producing strong rains. we do have wind advisories across portions of california, nevada and northern portions of the rockies where we can see wind gusts between 50-70 miles an hour. those conditions are very dangerous, not just the flooding and snow but strong winds. flooding across northern

california and southern portions of oregon where we are talking about several inches falling today. we're expecting another storm as we head into tomorrow. we do have basically drier conditions across northern california. that will be the story for monday. next storm on tuesday will be taking more of a northerly track. portions of oregon will begin with the heaviest. northern parts of california and expecting heavy mountain snow. over a foot in some of the higher elevations of sierra. so i do want to bring you to the northeast because we're going to have to deal with some rain showers, nothing like california but heavier downpours in portions of upstate new york. >> gregg: maria, thanks very much. >> heather: holiday cheer in short supply on wall street. this is no ordinary year for stocks.

>> gregg: different this year. >> heather: why the market is in the doldrums. business correspondent joins us next. >> gregg: we'll talk to brenda about that. and accused of leaving thousands of classified secret documents in the hands of the enemy? now saying he has been punished enough because his cell was really small. our legal panel weighs in. [ male announcer ] red lobster's hitting the streets to tell real people about our new 15 under $15 menu. oh my goodness! oh my gosh, this looks amazing! [ male announcer ] our new maine stays! 15entrees under $15, seafood, chicken and more! oothe tilapiawith roastedegetab! i'm actually looking at the wo grilled chicken with portobello wine sauce. at pork chop was great! no more fast food friday's! we're going to go to red lobster. yep. [ male announcer ] come try our new menu and sea food differently and introducing 7 lunch choices for just $7.99. salad, sandwiches, and more.

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just snap a picture, hit send and done. take a step forward and chase what matters. >>. >> gregg: december is historically a good month for the stock market but fiscal cliff decline could dampen and mute the impact of the slew of economic data out this week. joining us now is brenda buttner. i was amazed to read december markets in 16 of the last 20 years have actually been big, good months for investors who were counting on the market to go up. >> that is broad market. so your 401-k ends the year on a high note. >> gregg: this is different, why? >> we can't look at historical factors in this because do i

need to say it again. here we go for the 18th time, it's having a big impact, not only does wall street hate uncertainty but major tax increases that could impact stocks. capital gains, dividends so a lot of investors are say why not sell now when taxes are lower in case they don't come up with a deal. we could see selling pressure on stocks. in addition to to uncertainty which is enough. >> gregg: i talked to a couple brokers, they can't keep up the phone calls. what do we do? do we take a dividend. companies are sending out dividends. cash in on capital gains? >> it's a hard thing to know. if you are in the market for anything less than five years, you ny, then you shouldn't be in it. this is an important time. if you do think there is not going to be deal, but who knows and who can say.

it might make sense to sell some stocks at this point. >> do you think some of the concern on the fiscal cliff is overbrought? >> you know what they are probably going to come up with something. if not on january 1st, then they will come up with some deal to make a deal, kicking the can down the road. >> gregg: which is congress's job. [ laughter ] >> and more important than the fiscal cliff a lot of investment houses are lowering their growth outlook. that is because the owners of small businesses, they are the drivers of the economy. they hire. right now, one out of five cut jobs in the next 12 months. one out of three is cutting capital spending. if there is no jobs we don't have consumer spending that is 70% of g.d.p., so this is really steam rolling. it is frightening.

>> gregg: i was reading economists and they say household purchases, wages in salary going down, durable goods decreasing now we have manufacturing coming out on monday as well as jobs report on thursday or friday? >> yeah, the jobs report is expected to be very dismal, about 75,000 net jobs. some of that is because of sandy, but housing market is rebuilding, it's recovering. that makes people feel more wealthy. this retail season is going to be very critical. it's going to tell us a lot. stocks could go up on that. we have some tail winds but right now there is a lot of question marks. >> gregg: brenda, we'll talk about sandy and impact on the economy in the next hour. you can catch brenda "bulls and bears", 10:00 a.m. right here on the fox news channel.

>> heather: coming up, investigators finding the case of a new jersey train derailment. it left on the dangerous gases spewing into the air. an important week for the administration. president obama expected to start announcing picks for his new cabinet but with ambassador susan rice stirring up controversy who is in and who is out? our panel weighs in. can i help you? i heard you guys can ship ground for less than the ups store. that's right. i've learned the only way to get a holiday deal is to camp out. you know we've been open all night. is this a trick to get my spot? [ male announcer ] break from the holiday stress. save on ground shipping at fedex office. gives you a low $18.50 monthly plan premium... and select generic hypertension drugs available for only a penny... so you can focus on what really matters. call humana at 1-800-808-4003.

>>. >> gregg: new concerns following a freight train derailment in new jersey. residents are very concerned about a hazardous chemical released during the crash. anna is live in the new york city newsroom with the latest. >> reporter: we are getting a

press conference and they approved a plan to remove a breached container. in that container is a flammable odorless gas called vinyl chloride. they are looking at whether crews this problems and the bridge collapsed on friday. workers with con rail that owns the bridge were out days before the derailment doing an inspection. as they look for prior inspection records officials are pointing to a faulty traffic signal for causing that disaster >> our team is going to be working to identify the point of derailment. they are going to be working to coordinate the bridge signal and track inspection records and in particular, they are going to be looking at the movable bridge and the locking mechanisms on the lockable bridge.

>> reporter: they will be reviewing repairs made to the bridge back in 2009 after a 16-car derailment. conductor had worked it previously but this was his first week back on it. punctured tanker was carrying 24,000 pounds of that toxic chemical. it caused the evacuations of 500 people. today more than a hundred are still out of their homes. 86 people have been treated for symptoms associated with the gas. workers and businesses outside the evacuation zones are even reporting having health problems feeling short of breath, dizzy. >> my eyes have been burning and today and tonight, all three of us headaches. >> having migraines. i never get sick never. my eyes are just like strained. >> so far no serious injuries have been reported. they are collecting water

samples from the creek and monitoring air quality. n.t.s.b. saying they want to get their investigators to the crash scene because hazardous material. hopefully they will be able to start doing that today. >> gregg: thanks very much. >> heather: top democrats and republicans out in forced to as expected pointing fingers and blaming each other for the stalemate over the looming physical crisis. both sides are sparring over taxes and entitlements and more spending and the defense budgeted. tim geithner says the white house has put together a balanced proposal. house speaker says the plan lacks any real chrome. >> we laid out a very detailed carefully designed spending and savings and tax changes to put us back in the path, protect taxes from going up and provide

some modest room for investments >> president and white house have had three weeks this is the best we've got? i was flabbergasted. you can't be serious? i just never seen anything a like it. we've got seven weeks between election day and the end of the year and three of those weeks have been wasted with this nonsense. >> heather: joining us is mcgill johnson and tony, republican political analyst. campaign consultant and correspondent for talk radio news service. so there was game we used to play. ride around in the back of the car and stare and each other and see who winks first. is this a game of who blinks first and who is going to blink? >> the game a chicken, i believe. there is going to be massive

cuts to the pentagon and we could be back to the recession. as the financial times points out they endorsed president obama. this is the same kind of proposal that president obama took to congress two years ago that got zero votes. this is the exact heavy on the revenue side, $1.6 trillion on tax increases, low on spending side and then he adds $200 billion of new spending. on top of that something we've never heard of before, he wants congress to basically give up the authorization to raise the debt limit which is part of their constitutional powers and he wants a bank check. this is very unserious and the speaker is frustrated. >> heather: i would like to break that apart. president calls for $1.6

trillion in tax increases, that is double what was previously suggested. so what part of this plan along with the $600 billion in saving including medicare that suggested in the $200 billion in additional spending, what part of this plan is a balanced or bipartisan approach? >> i bet john boehner things the grand bargain was good deal last year. the chicken question is john boehner having to blink. president was able to get $1.6 trillion because it's coming from the increase on wealthy americans. we don't want 98% of americans tax rates to go up in the name of saving tax rates for the wealthy. so that is going to increase on wealthy americans, 60% of americans overwhelmingly support. the president won this election fair and square. american voters are clear on the

mandate and support an increase in tax rates to balance this budget. >> that is not true. for the bush tax cuts to expire and top 2 percent even most generous estimate that is $90 billion more in revenue. not $1.6 trillion more in revenue even over ten years. even if you accept that larger number, the deficit is $1.5 trillion so, even if the republicans raise the you are giving $90 billion. where are you going to get the rest of it? it will have to come from entitlement reform and meaning spending cuts. >> it's coming from loopholes. i think we can. >> he criticized governor romney's plan based on the premise there is not enough revenue in the loop homes. he has agreed to the flame work, revenues or the table. we will give you $800 billion. that is great starting point.

president has insulted republicans who are going out on the limb by wanting to be more pragmatic about this by coming to the congress which even among the most liberal writers in it is not a serious proposal. the reality it has to be some point spending becomes the conversation, not revenue. >> we have given quite a bit up. we have given up $2.5 trillion. >> you gave up 2.5 in budget gimmicks. things that were going to end anyway. >> boehner and cantor do not want to tax the wealthy donors. that is what it comes down to. are we going to balance this budget? it's the engine of the economy it's going to be middle-class americans --

>> i'm giving you an honest. >> heather: this has to be the last word in five seconds. >> if i gave you every tax increase you wanted, it would take us one time for the solution, we have to talk about spending cuts. >> heather: as we discussed in the next, we have to wrap it up. thank you so much. we appreciate it. good conversation. >> gregg: i broke out a sweat on that one just listening to it. army private at the center of the wikileaks scandal is in court again. his attorney says prosecutors should drop the case against him because he gets a little depressed. we'll talk about that with our legal team coming up. ♪

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>>.

>> gregg: the u.s. army private accused of sending private documents to wikileaks appearing in a courtroom, focusing on bradley manning's pretrial confinement and defense team is conditions over that period were so punishing the case against him should be entirely dismissed. joining us now bob massi and lis wiehl. let me start with you. manning doesn't like to be locked up and cried one day. i'll quote, when the guards seem angry and made me nervous. so lis, on that basis he should be let go? >> no, absolutely not. >> gregg: if that was a legal standard, all prison cells would be empty? >> now he is complaining to his lawyers action that was done to him after he committed the crime.

he allegedly committed this huge crime. all these leaks. now he is saying, gee, feel sorry for me. maybe at sentencing but nothing do with the charges at all. >> gregg: here is what he said at his hearing sitting in his cell right after he was arrested. this is the principle parted. i remember thinking i'm going die. i'm stuck here in this cage and i don't know what is going to happen. i thought i was going to die in this cage. that is how i saw it an animal caged. he went on to testify, i was really bored. wouldn't most judges say, bradley put on big boy pants. you are accused of a serious crime. biggest espionage case in american history? >> it breaks my heart to hear it. i think we're in a situation, how about the people he has put in harm's way as a result of

this information that was given out. number two. assuming what was going on for months, where have the defense lawyers been previously to bring it to judge's attention earlier to prevent this. it's embarrassing they would file something like this. we know there is no nexus between the crimes that have been committed and the fact he is uncomfortable in jail. as you said, a lot of people would be filing motions to dismiss. >> gregg: two psychiatrists that manning was tightly confined despite their recommendations to ease the confinement. but manning as i mentioned is accused of betraying the country and aiding the enemy. can you think of a better reason in the world to keep him tightly confined? >> his own lawyer said he did it as a result shear out of mind

boredom really? fine, take it. >> gregg: there is another reason you want to keep anymore solitary confinement and keep a watch on him he was allegedly suicidal. not only that if you take him out of solitary and put him in general, he is a target and he would likely be killed the very same way damer was killed? >> how can you understand this. it's remarkable some people, how about you allegedly committed these crimes. even in the middle of plea bargaining on this case as lis said initially, maybe it could be a mitigating issue. put had him in general population based on these crimes it's sending a jail for child

molestation. i wouldn't plea bargain on this. >> i agree. this is ultimate, ultimate violation to our country. >> if you are going on to go ahead with a harsh sentence, this is the guy. >> gregg: i would have made this argument in fronts a judge, he would sent me off. if this move works, every lawyer in america will make this. >> there is no way this argument will work. >> my recollection, didn't it at some point, scott peterson made these type of arguments. to come up with these things, the lawyers think they are doing a job. in this cases, it hurts more than help. >> scott peterson is on death row in california. >> gregg: absolutely. >> where he belongs. >> gregg: good stuff. lis and bob, thanks for being

with us. >> heather: coming up a big shakeup in president obama's cabinet in his second term. president could be announcing new nominations soon and why reporters and critics are keeping a close watch. our political panel weighs in. this holiday, share everything.

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>>. >> heather: welcome back. a possible showdown in washington has president obama prepares to assemble his new cabinet and there is controversy over the potential candidacy of u.n. ambassador susan rice to be the next secretary of state. andy dean is national radio host. ellen rat nor. let's begin with this. white house has signaled that susan rice may be the president's choice to replace hillary clinton for secretary of state. she is known to be one of the president's greatest loyalists and as recently this week, the president voiced utmost confidence in her. what hou do we feel about that? >> it's interesting but all the republicans have gone after ambassador rice because of benghazi but in fact there is a lot of reasons she may not make

the best secretary of state. i'm a liberal here. that is because of the drones issue, because of her reputation in africa. they are focusing on benghazi and also her holdings. >> heather: do you think they will push forward on her nomination? >> susan rice is incompetent. it's a pattern. in 1996 when she was in the state department in africa, she was offered osama bin laden on a silver platter by sudan. she didn't accept him. fast forward two months, she was not in attendance when benjamin netanyahu gave a speech. benghazi, and there is a pattern that she is not good for the job. will he nominate her, but she needs 60 votes to go to the senate to see if she gets confirmed. it's no the going to happen.

>> heather: so you are in agreement on that point. what about other picks, secretary of defense will have to contend with destabilizing middle east all the time when big defense cuts are anticipated. what should the president do there? >> of course, there are some people that are being looked at. i do think when the president when he was running for office about how he appointed people in cabinet that he didn't necessarily agree with. don't be surprised if we get a chuck hagel in this. that very well be who is the defense secretary. i think where a going to see very unusual and creative picks that is my guess. >> heather: who do you think the president should choose? >> i think he is going to pick john kerry. i don't like the guy. what he did after the vietnam is

disgraceful. he lost badly in 2004. 145 days after he gets picked. massachusetts has to have a special election for next u.s. senator and that will be scott brown. >> heather: and his name is being thrown around also as secretary of state. >> it's interesting. i'm not so sure because of the senator brown issue, i'm not so sure the president is going to go for senator kerry for in any position. >> i was going to say that i think he is said set on susan rice. susan rice has gone along with benghazi, if we're nice to radical islamists we can all hold hands. he wants to push that through because he thinks he can do anything. >> heather: i have to tell you

i -- i totally agree with you analysis of susan rice. i don't think she is great person for the john but i disagree with you with why. >> the new c.i.a. director will have to contend with a growing world instability and world threats and boosting the reputation of the agency. what do you think the president should do in terms of the c.i.a. director? >> i think they need to pick someone with less testosterone but enough is enough. >> there was great cartoon, some guy looking like a bum, i can be c.i.a. director because i know enough not to use g-mail. >> heather:ly agree with you there. thank you both for joining us. we appreciate it. >> gregg: how about the weather nightmare, residents facing dangerous flooding, a third

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>>gregg: welcome to brand now a potential disaster in northbound california, can the region's rivers contain the surge of water brought on by a series of powerful storms?

are negotiations over the fiscal cliff going nowhere, fast in coming up, what republican leaders have to say and who the white house is not backing down. >> plus, controversy new guidelines for what constitutes a mental health disorder and why now there is a new one, binge eating. >> we began in washington, new urgency as the united states inches closer to potential economic disaster with less than a month before the so-called fiscal cliff, but as the clock ticks down to mandatory spending cuts and tax hikes, negotiations to reach a deal look like they are at a standstill. and now, live to washington with the latest. steve? >> that deadline for action could be fast approaching but the two sides do not appear to be in a hurry, instead of negotiating a deal the players spent their unsunday in -- sundy

taking their views to the public. speaker boehner appeared on fox news sunday expressing his surprise when geithner laid out the white house plan of action, calling for a new revenue and stimulus spending. >> i was flabbergasted. i have never seen anything like it. we have several weeks between election day and the end of the year and three of those weeks have been wasted with this nonsense. >> for his part, secretary geithner saying the ball is new in the g.o.p.'s court and he says the administration is ready to move forward if republicans agree to raise taxes on wealthy americans and specify their own demands for reducing government spending and he defended the plan that speaker boehner says is not a serious proposal. >> we think that is a very good southwest proposals and that is good for the economy.

if you have different directions, they want to go further, they should lay that out to us. >> today, house democratic leader nancy pelosi turning up the pressure on speaker boehner with a vote scheduled on extending the bush tax cuts for the middle class. >>heather: thank you. >>gregg: from the fiscal cliff to will i don'ting the debt ceiling speaker boehner disagreeing with president obama under the white house proposal. the president would have the power to raise the debt limit on his own, whenever he wants, as needed. speaker boehner saying congress isn't budging on that issue and here is what he had to say on fox news sunday. >> congress will never give up the power and i made it clear to the president that when we get to the debt limit we need to cut some reforms that are greater than the increase in the debt limit. it is the only way to leverage the political process to produce more change than if left alone.

>>gregg: you can see more of the remarks on "fox news sunday" at the top of the hour. >> extreme weather on the west coast flood advisories in effect for storm ravaged parts of northern california as another storm bringing heavy rain and police and fire officials wanting the napa and russian rivers expected to break their banks. and now, streaming live from northern california. >>reporter: yes, the banks are about to break any moment now, 12 hours ago there was torrential rain it looked to be tidal waves which is an exaggeration but so much fell from the scion the third storm that came through it was almost as much as the two storms previously combined. now, that is in the ground and bright skies behind me this afternoon, in sacramento they saw some heavy rain and the

locals are being philosophical. >> it will be three or four high across the front the garage doors and the same on the back and hopefully the tarps will go up and around the tarps. if the river comes over the banks, we are used to it. it is not the first flood we have gone through. >>reporter: no idea what the scale of damage is that we will see. in the napa valley, seven years ago, there was massive damage there, 1,000 homes affected. the map shows the three main rivers are the napa river, and the russian river as you mentioned, and, also, the truckee river in nevada and they expected there waters to be 4' over the flood level there and the town of truckee is seeing

the people evacuate. round three of the storm, really, is very much phase one of what is expected to be big floods in the areas in the north. >>gregg: thank you. >>heather: for more on the major flooding concerns, our meteorologist is live. maria: hello, everyone. we are talking about flooding across california and many of the rivers are expecting to see additional flooding not so much because of the additional rainfall we are expecting from additional storms but because it will take time for a lot of the waters to continue to recede and go downstream. the riffs in some places, although the river is over, could see a rise in the water across the area. so we do have a number of flash flood ranches across northern california and flood warnings because of the flooding ongoing and we are actually expecting another storm system to arrive in portions of the pacific northwest and, also, northern

portions of california and the next storm will not as as strong as the one we dealt with this weekend but we will still talk about the main concerns and heavy rain and the ground is sat rated with strong winds and snow on the higher elevations. wind warnings in effect across the rockies and across the state of california, with gusts over 50 to 60 miles per hour especially as we head into higher elevations. we will see another storm system arriving as we head into tuesday, between storms, a lull across northern portions of california, and across the northwest you will continue to deal with the areas of moisture and as we head into tuesday, the heavy rain will start to pick up across northern parts of california, oregon, and into washington, dc, and, of course, the snow from the higher elevations so traveling along the mountain passes will be dangerous and, also, tricky, so you can see the rain winding down across northern california as we speak, and as we head eastbound in the northwest we will deal with showers across upstate new york, and pennsylvania, and we have been

dealing with this through the day, and, otherwise, i point out that temperatures across portions of the plains have been well above average for this time of the year, up to 30 degrees above average for some of you and headed into tomorrow, more warm and 71 degrees in kansas city. >>heather: 81 in dallas does not feel like december. >>gregg: 71 in kansas city, can you believe that? a somber day, really, for the nfl's kansas city chiefs, and all of the fans and residents there. the coaches are arriving at their stadium for today's football game against carolina, reeling trying to focus after the terrible tragedy when police say a defy-year-old linebacker killed his girlfriend and drove to the stadium and took his own life shooting himself right in front of his head coach and the general manager. fans now reacting to the murder-suicide. >> it doesn't feel that great to

come out here, but we will play the game. >> i think they shouldn't have layed it today, they shut have waited until monday or even tuesday to play it because everyone is still in sadness and feeling bad about what happened over the past weekend. >> people will be down, but, altogether, we will pull together because we are kansas city, that is what we do. we are a family. >>gregg: friends and teammates say they never saw any sign of trouble in his personal life. >>heather: serious concerns after a freight train carrying highly toxic contempts derails in new jersey, investigators are interviewing the crew, and they are looking into signal problems and possibly track defects as a possible cause. >> our team is going to be working to identify the point of derailment and they will work to coordinate the bridge, signal,

and track inspection records, and, in particular, they are going to be looking at the movable bridge and the locking mechanisms on the movable bridge. >>heather: appear evacuation has been ordered for the surrounding areas as crews conduct air and water quality tests. >>gregg: judgment judge's in the top court walking off the job protesting against an increasingly violent and chaotic political crisis. the latest twist pitting morsi against the legal system. you are look at live pictures in tahrir square, in cairo, and it is packed with demonstrators in the midnight hour, and, also, steve harrigan streaming like overlooking the scene. what is the latest? >> we have seen remarkable and basic challenges to democracy here in egypt over the past week, and last wednesday we had a dly elected president saying any decrease he issues is final and cannot be reviewed by the

courts or anyone else, pledging himself above the law. today we saw step two in the maneuver, and it was the supreme constitutional court when the judges were headed to the building which was surrounded by a crowd of demonstrators loyal to the president and judges felt intimidated physically and mentally and now they are on strike refusing to work in this atmosphere, judges unable to get into their court to do their job, the next step is this national referendum on a draft constitution, a constitution that was pushed through in one night in one night. if they vote the constitution in the president says he will rescind all the extraordinary powers in. right now, it is a battle on the streets between competing demonstrations behind me on tahrir square and people who want to throw the president out of office who feel like he is trying to become a dictator and their numbers have dwindled and two miles arm over the past few days we have seen protesters in

favor of the president, often from the muslim brotherhood party, their numbers in the tens of thousands, a strong show of popular support for egypt's president. >>gregg: thank you from cairo, steve. >>heather: supporters of president morsi staging a demonstration in washington, dc at the egyptian embassy armed with protest signs in arabic and english, and opponents of president morsi were carrying signs with slogans that egypt deserve betters. >> militants attempting to storm a joint airbase early this morning, with homicide bombers detonating explosives at the main gate and the blast kicking off a gun battle lasting two hours and a nato spokesman saying no gunman actually breached the basis and there are reports that five afghans were killed, one of the them the member of the afghan security

force and nine afghans died. >>heather: george hr gust -- george h.w. bush is in the hospital. a spokesman said there was no change in the president's condition the last couple of days, and originally, though, the 88-year-old was scheduled to be released this weekend but doctors thought it was best to keep him in for further observation. >>gregg: and in japan, a tunnel roof suddenly gave away. >>heather: and do you not have to be in the path of the super storm sandy to see an impact on your wallet right now.. five su, like ourender snow crab

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>>gregg: palestinian president abbas turning home to a hero's welcome after he won a palestinian bid for nonmember observer status at the united nations. at least seven people now missing, several hours feared

dead after a tunnel collapsed outside tokyo and emergency crews now locking for -- looking for any survivors. in charlotte, north carolina, a 22-year-old man fell 22' off a ramp outside bark of america stadium and is in the hospital life threatening injuries. >>heather: a month after hurricane sandy, we are getting a clear picture of the devastating economic impact of the super storm causing havoc with consumer spending and skewing unemployment numbers. and now we bring in anchor of bulls and beers, -- bulls and bears. even if we were not affected by bye sandy she is affecting us economically. >>guest: the unemployment number is not so important now that the election is over but it affects a lot of people.

we expect a net creation of 75,000 jobs, incredibly low. and part of that is due to sandy. there were $18 billion in lost wages and salaries from sandy. it really hit, although it didn't hit the nation, it will have an impact on g.d.p. and on unemployment. in october, we also saw that there was a decrease in purchases, adjusted for inflation, the biggest in three months. so, there was a definite stoppage, this was a populated area with an impact. >> when do we expect the numbers will come back? >>guest: there is one positive impact in terms of the economy. you have workers, construction workers coming from all over the country who have been unemployed to help rebuild and we are expecting there could be a half percentage point increase in economic growth next year

because of this rebuilding effort. >>heather: is that construction jobs or over all? >>guest: in the reconstruction, rebuilding and infrastructure. this is not the way that we want economic growth but there is one side where people are getting jobs who did not have them before. >>heather: and another increase in auto sales? >>guest: so many of the cars were flooded out and that is the first thing people need to do is get a car from getting their insurance money we are seeing a big pickup in terms of both used and new cars. >>heather: home sales? >>guest: that is not directly affected by sandy so much but it depends on how many will rebuild or buy elsewhere but the housing market is starting to rebuild overall. sandy didn't have that were of an impact on it yet. that is something that we will see in the future. and there is some uncertainty about that number. health health what can we take

from the super storm and how it struck the economy to make changes so that the next time around that it happens we don't experience it? >>guest: it is up to the individuals. you see people say this is not a house, it is a home, we have lost it, our families have been here forever, we will continue to stay here. now, the states have to bear a lot of the brunt of this cost of rebuilding the infrastructure, and states are cash strapped and the federal government cannot come in and pay so much so we will see some radical changes in the way that disaster assistance is given to the people would need it. >>heather: thank yous brenda, we appreciated it. >> you can catch brenda at 10:00 a.m. on saturday bulls and bears and here every weekend, as well. >>gregg: i am your biggest fan. >>guest: really? do you want an autograph?

>>gregg: could i, please. speaking of the effects of hurricane sandy or super storm sandy, depending on what cuomo says, the statue of liberty will remain closed indefinitely, with crews having to work to repair the heavy damage from the super storm and lady liberty recently undergoing the $30 million refur beneficiarying just rebeing office the storm. word of continued closing is a major blow to businesses linked to the tourist attraction and they have already laid off 100 employees for the statue cruises. >> and talks over a fiscal cliff could be at an standstill. our political insiders are here to tell us about that.

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because during the holidays, keeping your identity protected means keeping your family protected. >>heather: welcome back at the bottom of the hour. a gruesome discovery in a suburb of los angeles with four people shot to death face down and lined up next to each other. in hungary hundreds denouncing a lawmaker who called for a national registry of jewish citizens. the idea shocked many who say it is like nazi germany. 550,000 hungary -- hungary jews were murdered. police are trying to get

supplies to people stranded in snow with many drivers fearing they will run out of gas and their only source of heat. >> a bold move by a college do fight obesity. a school in georgia making the tough decision slashing their $1 million sports budget and applying that money to wellness on campus. and now, like to atlanta with more on that story. elizabeth? >> you are right, this is the last year that some in college will part with division three athletics program, a tough call for many of the athletes. they say they support the decision according to health experts, four out of five african-american women are considered obese, the highest rate of any group in the united states. we spoke with a senior hotels us being in a healthy weight and a healthy mindset gives peers an advantage in the workplace. listen. >> especially at this age because life is just going. when you graduate college there

is a big word out there and to be able to leave with a wellness program enhance this, is invaluable. >> this is the last season women will play basketball, tennis, and softball, among other sports and will be outfitted with classes and yoga studios and instructors and a host of sports. we spoke with a doctor who says, for some women, this transition could be a life saver. >> 50 percent of the students are plagued with the common problems that we see, obesity, definitely, high risk would file for type two hideouts and hypertension. long term, as they become more chronic illnesses, this is going to impact the quality of life of those women long term and it will impact their ability to be successful as citizens in the

community. >> we spoked the president of spell man college and received a number of inquiries so in the future we could see other colleges making the same move. >>heather: thank you. >>gregg: new concerns in washington, dc, and you know what we are talking about here, talks to resolve the so-called fiscal cliff. they could be going nowhere, fast. listen to treasury secretary geithner and how speaker boehner today on fox news sunday. >> this is a very carefully designed set of reforms and if republicans would like to go beyond the reforms or they want to do it differently though should tell us how they want to do it. >> we are nowhere. period. nowhere. we have put a serious offer on the table to get the question resolved. but the white house has responded with nothing and they have asked for more revenue than they have been asking for the

whole entire time. >>greg: and now let's bring in our insiders. doug leboutillier and pat caddell and doug schoen. and the g.o.p. some say are like the washington generals. >> i used that analogy because it is lose-lose for the republicans. what i mean by that, the president believes that if the republicans cave to more revenue and spending he has won a battle for the democratic left and if he doesn't win it there a stalemate and we go over the cliff cliff, and the president believes that not only will the republicans be held accountable, but, bottom line, the democratic left will like the new revenue that the higher taxes provide.

>>gregg: he will preside over a recession which will ruin his second term and his legacy which some argue is the only thing he cares about now. >> he believes the republicans will cave immediately after the first of year but it is a risk that he is willing to take. >>gregg: you told me during commercial break that the republicans will snatch defeat from the jaws of victory. >> they have been given something this week and john will tell us what they have done, but, let me say this, the idea of raising the we debt ceiling i am shocked suddenly it is an issue the people care about and the president demanding to be given all the power to raise the deficit. abolish congress. by the way this is like the court packing. roosevelt was a god with 61 percent of vote and this man is at 51 percent. and the democrats would not support it. the answer is, republicans have a weapon in front of them which

is this issue. the president is there with a 5 percent rating and the republicans have a rating and they do not talk about it. >>gregg: we speak of the reasonable man in the law, mcconnell tried to show himself as a reasonable man saying hit the rich on higher taxes, hit the rich on higher premiums for medicare, that sounds reasonable, doesn't it? >> he talked about changing the retirement age for social security and eligibility stuff for medicare, and what he did, what what the republicans do all the time, he put not one foot, not two feet, but his entire body and the whole g.o.p. on the third rail of american politics without getting anything in advance for it. >> we have given up the tax thing day-by-day house members

are saying they will blow off the grover norquist pledge. why do we have to be held to a pledge some would say? >> some. why give up something if a negotiation until you get something back? they are not getting anything back. >>gregg: the concession was a mistake? >> obviously. >> what we are missing from the republicans, that would be a positive message of what they are for. if as they did with paul ryan, they say we want to take medicare, social security, medicaid, and they do the same thing now with mcconnell and they need a game changer. >> as i said, on the debt crisis --. >> no, it is about spending cuts and the president is proposing not cuts but more spending. >> here is the point. if the republicans said, wait, we are going to start right here

on this constitutional question, make the democrats in the senate and house of representatives vote, do you think mary landrieu would vote to give him total power? the republicans do not have a clue how to handle this. >> that would be smart, to call a vote right now on the president's ability to take away from congress the power to raise the debt crisis. that one. on the point about --. >>gregg: that is unconstitutional. >> and the fact they need a positive pro growth agenda which sounds like what we have said each sunday since march about mitt romney but he never did it. he lost. the republicans are not doing i. the agenda is very clear, it is outlined in the simpson-bowles debt reduction commission which the president appointed, ran away from, it has all the elements here that were for growing the economy and pulling

in spending, where is the republican talking about it, it isn't a mistake for republicans to say we will not raise tax rates on the high income learned but we will allow you to tax the same people more by closing loopholes and the net effect is the same thing. >> exactly, if they conceded that they are willing to do revenue any way to get a deal with the democrats, do what john and pat are talking about they will have a positive agenda. right now all they are doing is take away benefits and playing political games that as you suggest make no sense. >> in 2011 the republicans were killed on the debt crisis and sequestering. do you know who took the worst hit? president obama. he lost the race in new york. a democratic district. he lost in nevada. the president is supposed to lead. if they would do what john or doug said, saying we are for "sensible" but, mr. president, you lead, you tell us how to cut

the budget, we are now allowing the country to go off the cliff, it would be a lot better situation. >>gregg: why not allow the president and the country to go off the cliff? it will be damaging short-term but long term we it could be economically healthy. >> i wouldn't want to risk it. putting us in recession is not a good anyone. the way the media works, the republics are going to get 85 percent to 90 percent of the blame for going over the cliff. because they are not -- not this president, with this media. they will say it is the stubbornness of mcconnell and boehner. >> the first step is to change the debate and make this president understand, if you

going off the cliff it is because he will not stop spending and he will not lead. >>gregg: folks in washington are saying the president doesn't want to roll up his sleeves and do the hard work of work out a deal, and he hits the road, leaves town, and goes campaigning again. >> if the republicans have a land they would say, mr. and mrs., let's talk today about our plan versus your plan, we are available. but in the absence of a plan the president can go out and campaign, and --. >> do not just lead with your chin on entitlements. >>gregg: you agree the president is a lot smarter? >> no, the republicans are more stupid. >> a lot of them want to go off the cliff and the congress, they think politically they can be helped. >> what the democrats are doing

is effective, not responsible. >>gregg: and the president is playing politics. >> he is playing politics and political chicken. it is wrong. but he is getting away with it. >>gregg: coming up the insiders will weigh in on the political firestorm over ambassador susan rice and how it is affecting her chances of being the next secretary of state. but when i was in an accident... i was worried the health care system spoke a language all its own with unitedhealthcare, i got help that fit my life. so i never missed a beat. that's health in numbers. unitedhealthcare.

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>>heather: and now a quick check of the headlines, former president george h.w. bush is still in the hospital with bronchitis. today is the 20th anniversary of the text message. the first message read "merry christmas." the spirit of giving this

holiday season, the coast guard ship with 1,300 christmas trees being distributed to families in need in the chicago area. >>gregg: u.n. ambassador susan rice's potential nomination as secretary of state and new questions over her attempts to explain her remarks of the terror attack on the consulate in libya that were flatout wrong. and now, bringing them back, our political insiders. congressman, normally, when a potential nominee or a nominee migrates to capitol hill to meet with the senators they go behind closed doors and make nice and come out and the senators say it is wonderful, i probably could vote for her, i will give her every opportunity. but rice comes out of the meetings and the senators are more opposed than ever before. >> you have to wonder what went on in the meetings.

she wants to be the chief diplomat of the united states. she must have gone in there and not only ticking off mccain is one thing but susan collins who introduceed her when she was nominated there is a way to a u.s. senator, you do not talk, you let them do all the talking. she must have really got were her back up thinking i got the president behind me, i will get nominated whether you like it or not, and that attitude did not work. >> she didn't say "i'm sorry." >>gregg: she had the c.i.a., the acting c.i.a. director in tow. >> she could have said, look, i characterize the intelligence inappropriately, and i feel badly, and i could have been more cautious in my characterization so i apologize. she clearly didn't do that.

>>greg: and the former attorney general said, there are a lot of potential nominees that do problematic things but with her it is moral fitness. >> she delivered a political message that neither hillary clinton or the director of intelligence. >>gregg: why do you think hillary clinton would not? >> she was not willing. what she is doing and i will say this because it needs to be said, i came out of the civil right movement and i was involved in the election of the first black mayors across america, chicago, philadelphia, atlanta, a lost places. for the congressional democrats to go out there and to attack her as racist and an attack on women, when are we going to reach a place in politics when where you lie, which she did,

and you screw up, you are held accountable regardless of race and gender. this is, this victimization stuff is backfiring i am afraid and it is all the cards she think she has and she is running the meeting and was arrogant. >> it comes from the top down, since the president was re-elected, we saw the thing we talked about in the first segment with him trying to take the power away to raise the debt debt. that is unbelievable. and i think he things he can have anyone he wants and stick it down the senator's throats. >>gregg: do you think he will nominate her? >> i don't think he can. he will have to go of necessity, to john kerry who the republicans will confirm in a second and maybe chuck hagel at defense and have a bipartisan group. >> you guys could be misjudging one thing, doug, and that is his

arrogance so far since the election has been unremitting. >> the attitude would be how dare you tell me what to do i will tell what you is going on, how dare you. >> it would be an interesting battle. >> i think i am right but you could be. >> you say she is nominated and you say no. >> i don't know but --. >> i think he will wait. the president will wait until he sees how the debt debt ceiling s going. he doesn't want both of them on the front burner at the same time. >>gregg: gentleman, our political insiders, john leboutillier and pat caddell, and doug schoen, great to see you. you can watch political insiders on monday at 10:30 a.m., eastern and they will be back here, of course, next sunday and you can follow them on twitter.

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>>gregg: changes in the way mental disorders can be diagnosis order. the american psychiatric association updating their

manual for the first time in 20 years. >>heather: binge eating and hoarding, and gender identity order has been removed. and we have a faculty member from new york university school of medicine and contributeor, so, why the changes now? what are the implications? >> it is important for both doctors, patients and insurers, very really important. we are trying to get it right. each 10 or 15 years they look at psychiatric diagnosis which can't be made on a blood test. it is not like your cholesterol. and we want to fine tune it so appropriately treat patient whose need it and make sure they are ensured for the condition and remove a diagnosis that should be part of a larger category. that is what we are seeing. >>gregg: what do youthe new cha? >> you have the leading

psychiatrists who have no vested interests other than to get it right. so they are looking at this and they are saying well we know people have aspergers and it should be part of autistic spectrum disorder. they know that dyslexia should be part of general learning, and gender identity, they realize they want to call it something different. for example, kids who have temper tantrums, rather than the kids falling into bipolar disorder, a separate criteria to say it is a medical problem. >>heather: there are rippling effects. >>guest: right, because if you fall in a clinical criteria you can get insurance and your drugs paid for and you might get special schools that can provide

special services for you and it is very important, but the goal, again, is for the psychiatrists to review the clinical diagnosis and say, look, we think we can do better and to categorize people more effectively. homosexuality was taken out of a mental disorder. that is what this is about. >>gregg: and ptsd which is relevant with the soldiers? >>guest: they are just trying to define and get better criteria. what is the offender agent in how serious is it? what is the patient's activity that justifies that diagnosis so they, then, can get treated. 30 percent of americans are at risk for mental disorder. this is a big deal. that is a big number. number two health risk in the united states. so, this is, 30 percent is a big number. you need to get this right. we don't have specific criteria, blood, physical examination, you

rely on patient interviews. and you want on get it right. >>heather: schools use this? >>guest: for funding and for taxes and for health insurance and for drugs it is a big deal. that is why you have the leading experts in psychiatry who are trying to do this properly and people will say you are medicalizing certain conditions but they are saying, well, over the last 20 years this is what we learned about human psychiatric issues, let's get it right. it is not ignoring aspergers but it is saying we understand people have hyper association wallet, people have gender issues, let's try to find the right diagnosis. >>heather: but binge eating will not take precedence over something else? >>guest: no, just changing the categories. [ female announcer ] you can make macaroni & cheese

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